Like barcode and voice data entry, RFID is a contactless information acquisition technology. RFID systems are wireless, and are usually extremely effective in hostile environments where conventional acquisition methods fail. RFID has established itself in a wide range of markets, such as, for example, the high-speed reading of railway containers, tracking moving objects such as livestock or automobiles, and retail inventory applications. As such, RFID technology has become a primary focus in automated data collection, identification and analysis systems worldwide.
Of late, companies are increasingly embodying RFID data acquisition technology in a fob or tag for use in completing financial transactions. A typical fob includes a transponder and is ordinarily a self-contained device which may be contained on any portable form factor. In some instances, a battery may be included with the fob to power the transponder. In which case the internal circuitry of the fob (including the transponder) may draw its operating power from the battery power source. Alternatively, the fob may exist independent of an internal power source. In this instance the internal circuitry of the fob (including the transponder) may gain its operating power directly from an RF interrogation signal. U.S. Pat. No. 5,053,774, issued to Schuermann, describes a typical transponder RF interrogation system which may be found in the prior art. The Schuermann patent describes in general the powering technology surrounding conventional transponder structures. U.S. Pat. No. 4,739,328 discusses a method by which a conventional transponder may respond to an RF interrogation signal. Other typical modulation techniques which may be used include, for example, ISO/IEC 14443 and the like.
In the conventional fob powering technologies used, the fob is typically activated upon presenting the fob to an interrogation signal. In this regard, the fob may be activated irrespective of whether the user desires such activation. Inadvertent presentation of the fob may result in initiation and completion of an unwanted transaction. Thus, a fob system is needed which allows the fob user to control activation of the fob to limit transactions being undesirably completed.
Currently, many commercial establishments have only a few POS terminals for use in conducting a transaction. Further, a clerk or other person is usually needed to facilitate processing the transaction. For example, at a restaurant, the waiter must take a diner's credit card and run it through a credit card terminal to process the transaction. Often, this process can be slow and inefficient.
Thus, a need exists for a faster, more efficient way to expedite transactions. Further still, a need exists to facilitate a transaction without using a clerk or other third party.
Where companies have multiple POS terminals, implementing network connections for each of the terminals often is expensive and may require significant manual labor to install cable. Changes in location of POS terminals may also be expensive because changes in the network layout may be required. Each POS terminal at a grocery store may be expensive and require significant operating memory and bandwidth for data transmission.
Thus, a need also exists for inexpensive transaction processing devices that can be quickly added to a network by using already existing transaction processing devices to connect to the network.